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Thursday, December 27, 2007
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Market Commentary
Dec 26 2007 3:33PM
Sensex settles above 20k

The market surged today led by rally in in index heavyweight Reliance Industries. The market got a boost from reports the government has allowed all trusts to invest in securities, including shares and bonds of listed companies.

Oil & gas, metal, capital goods and power stocks were in demand. IT stocks slipped. Mid-cap and small-cap shares gained momentum. The market breadth was strong. 24 out of 30 stocks from the Sensex pack were in green. Asian markets, which opened before Indian markets, were mixed. Key European markets were closed today, 26 December 2007.

The government on Monday, 24 December 2007 allowed all trusts to invest in securities, including shares and bonds of listed companies. Accordingly, charitable trusts, including educational institutions, hospitals and religious trust, will be able to access the market. The move will give a boost to the already-booming equities market as a large number of trusts, such as schools, temples and private hospitals having huge resources will be able to invest their funds in the market. Trusts had a corpus of nearly Rs 25,000 crore by the beginning of the decade, according to data gathered by the government for tax purposes.

The 30-share BSE Sensex provisionally ended up 345.40 points or 1.74% to 20,199.52.

The broader CNX S&P; Nifty provisionally ended up 85.40 points or 1.43% to 6070.50.

The BSE Mid-Cap index rose 2.02% to 9,398.08. The BSE Small-Cap index rose 2.98% to 12,337.20.

The market breadth was strong. On BSE, 2251 shares advanced as compared to 664 that declined. 30 shares were unchanged.

BSE clocked a turnover of Rs 7620 crore compared to Monday (24 December 2007)'s Rs 5,694.27 crore.

Indias largest private sector firm by market capitalization & oil refiner Reliance Industries jumped 3.73% to Rs 2892.

Indias largest private sector bank by assets ICICI Bank rose 0.67% to Rs 1215.

Indias second largest software exporter by sales Infosys Technologies was steady at Rs 1812, off days low of Rs 1771.30.

DLF jumped 5.17% to Rs 1021.90, Hindalco Industries moved up 4.25% to Rs 209.55, Tata Steel rose 3.50% to Rs 892.70, Tata Motors climbed up 3.30% to Rs 752 and State Bank of India gained 3% to Rs 2400.

Bajaj Auto slipped 1.21% to Rs 2680, TCS skid 1.24% to Rs 1095, ONGC fell 0.91% to Rs 1236, Hindustan Unilever declined 0.44% to Rs 214.60 and Housing Development Finance Corporation fell 0.37% to Rs 2886.50.

Asian markets were trading mixed today, 26 December 2007. Key indices in China, Japan and Singapore were up between 0.62% to 1.23% . However, key indices in Taiwan, and South Korea were down between 0.13% to 0.66%.

US market finished higher on Monday, 24 December 2007 after credit worries eased following news Merrill Lynch will receive an investment of up to $6.2 billion from Singapore's government-controlled investment fund, Temasek Holdings, and US-based money manager Davis Selected Advisors. The Dow Jones industrial Average rose 98.87 points at 13,549.33. The Nasdaq Composite Index, finished higher by 21.51 points at 2,713.5. S&P; 500 finished higher by 11.99 points at 1,496.45.

Oil prices edged higher today, 26 December 2007, on new supply concerns amid expectations that data from the US will show a new decline in its oil inventories. Light, sweet crude for February delivery added 26 cents to $94.39 a barrel in Asian electronic trading on the New York Mercantile Exchange, Singapore.

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